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Govt allows appointing agents in defence

Indian Defence Ministry has allowed Foreign defence firms to appoint ‘agents’ to market their products in India. However, the Ministry has made some strict oversight which includes

  • Details of all Agents will be disclosed at the time of submission of offers and within two weeks of engagement of an Agent at any subsequent stage of procurement.
  • The vendor is required to disclose termination of the agreement with the Agent, within two weeks of the agreement having been terminated.
  • MoD reserves the right to inform the vendor at any stage that the Agent so engaged is not acceptable whereupon it would be incumbent on the vendor either to interact with MoD directly or engage another Agent. The decision of MoD on rejection of the Agent shall be final and be effective immediately.
  • All payments made to the Agent 12 months prior to tender submission would be disclosed at the time of tender submission and thereafter an annual report of payments would be submitted during the procurement process or upon demand of the MoD.
  • The Agent will not be engaged to manipulate or in any way to recommend to any functionaries of the Govt of India, whether officially or unofficially, the award of the contract to the Seller or to indulge in corrupt and unethical practices.
  • The contract with the Agent will not be a conditional contract wherein payment made or penalty levied is based, directly or indirectly, on success or failure of the award of the contract.
  • On demand, the vendor shall provide necessary information/inspection of the relevant financial documents/information, including a copy of the contract(s) and details of payment terms between the vendor and the Agent engaged by him.

Violation of the any of the above mentioned conditions would invite penal action but the policy does not state the exact nature of punishment.

Source: DPP 2016

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